The rate of IPT (Insurance Premium Tax) is set to rise again for the second time in less than a year, from 9.5% to 10%.
Insurance Premium Tax (IPT) is a tax on general insurance premiums, including home, travel and car insurance, and was initially introduced in 1994.
This announcement follows on from the last increase from 6% to 9.5% in the Summer Budget in July last year.
The extra amount raised by this increase will go towards those affected by flooding, as stated by George Osborne, The Chancellor of the Exchequer.
For more information on this increase, read the full article from Insurance Age below: